White House reassures Mich. delegation

[rickaren]

White House reassures Mich. delegation

Posted Thursday, Apr 23, 2009, 1:35 pm in Employee News

Michigan’s Democratic members of Congress heard again today that bankruptcy is not a preordained outcome for General Motors or Chrysler as far as the White House is concerned, but that there is more pain to come for both automakers and their employees regardless of what happens in the coming weeks, the Detroit Free Press reported.

That was the word out of an hour-long meeting between Michigan’s 10 congressional Democrats—including Sens. Carl Levin and Debbie Stabenow—and White House Chief of Staff Rahm Emanuel and Larry Summers, director of the White House’s National Economic Council, according to someone familiar with the meeting who was not authorized to speak publicly about the event, the Free Press said.

The person said administration officials voiced optimism that GM at least will survive the restructuring process; it was not immediately known whether they feel the same for Chrysler, the paper said.

Auto team members have been meeting with various parties this week and on Thursday are expected to meet with the National Automobile Dealers Association, which will press its case against requiring a reduction in the number of GM dealerships as a condition of the aggressive restructuring the Obama administration has demanded, the Free Press said. GM has until June 1 to gain additional concessions—including those from its bondholders—or it could be pushed into bankruptcy as well if the government called $14.3 billion in loans it has already received from the Treasury Department, the story said. (Detroit Free Press)